Israel’s high-tech sector continues to demonstrate significant resilience despite a prolonged period of conflict. The industry has reached new funding milestones, highlighted by three major acquisitions of cybersecurity firms—Wiz, CyberArk, and Armis—with a combined value exceeding $60 billion.
The Rise of AI-Native Innovation
A prominent example of this momentum is the AI company Decart. Founded by AI optimization specialist Dr. Dean Leitersdorf and Unit 8200 alumnus Moshe Shalev, the company has raised $100 million at a valuation of $3.1 billion.
Decart’s growth is supported by investors including Sequoia Capital, Benchmark, Zeev Ventures, and Aleph. The company developed a real-time video generation model that successfully passed testing on a new chip from Amazon, leading to a presentation at Amazon’s annual re:Invent conference.
Looking ahead, Decart is preparing for a larger funding round that could potentially reach hundreds of millions of dollars at a higher valuation. There are expectations that Nvidia may participate in this upcoming round.
Defense Tech and Military Integration
The intersection of software innovation and military systems has accelerated following the Russia-Ukraine war and regional conflicts involving Iran. This has fueled the growth of defense tech as one of the fastest-growing sectors.
Kela, founded in July 2024, has emerged as a key player in this space. With a team of 25 people, the company raised $60 million in May, following an earlier $28 million round from investors including Sequoia, Lux Capital, and the CIA-backed In-Q-Tel.
Kela provides an open platform that allows Western militaries to integrate commercial technologies into defense systems. The platform processes data in real time through a unified command interface without requiring major changes to legacy infrastructure.
Cybersecurity and AI-Driven Threats
Cybersecurity remains a primary focus for venture capital, with a growing emphasis on AI-native capabilities. Zafran, founded in 2022, recently raised an additional $60 million to help organizations neutralize security vulnerabilities and prepare for AI-driven threats.
Other significant capital raises include Torq, which raised $140 million at a $1.2 billion valuation to focus on U.S. Federal markets, and Upwind, which raised $250 million at a valuation exceeding $1 billion.
The trend toward AI integration is further evidenced by the acquisition of Prompt Security. Founded by former Check Point executives, the company was acquired by SentinelOne in a cash-and-stock deal valued at approximately $250 million.
Medical Robotics and Specialized Tech
While ophthalmology remains challenging due to high capital requirements and clinical complexity, the medical devices sector continues to see notable activity. ForSight Robotics raised $125 million in June 2025.
The company’s ORYOM platform is a robotic system designed for cataract and other eye surgeries. The system aims to improve surgical precision, reduce surgeon workload, and expand overall access to care.
Frequently Asked Questions
Which cyber companies were involved in the $60 billion+ acquisitions?
The three major Israeli cyber companies involved were Wiz, CyberArk, and Armis.
What does the Kela platform provide to militaries?
Kela provides an open platform that enables Western militaries to rapidly and securely integrate commercial technologies into defense systems via a unified command interface.
Who acquired Prompt Security and for how much?
Prompt Security was acquired by the cyber firm SentinelOne in a cash-and-stock deal valued at approximately $250 million.
How do you think the integration of commercial AI into military systems will change the landscape of global defense?
